Startups and Small Businesses are a critical part of our economy. They provide the majority of new jobs and salaries that are used to purchase goods (food, gas, rent), and stimulate the economy. However, Startups and Small Businesses need cash to fund their businesses and hire Americans. With the financial meltdown, the traditional means of business financing (bank loans, credit cards and venture capital) are no longer available to 98% of businesses because banks are holding on to their cash, credit card interest rates are exorbitant and private capital is only available to a select few. Without access to cash, thousands of businesses in 2011 will not start or grow and that means fewer jobs and a weaker US economy.
There is a solution. It is called crowd funding– regular Americans, choosing to invest small amounts of money in small businesses in their communities. However the SEC doesn’t allow the average American to invest at all because of regulations written almost 80 years ago. Sign our petition (click here to read the full version) to voice your agreement that the SEC should make our commonsense modifications to these regulations to provide a reasonable level of investor protection (anti-fraud & transparency) while easing the restrictions so that capital can flow to startups and small businesses from individuals who want to invest small amounts of money in them.